Russia

Article 167. General Provisions on Consequences of Invalidity of Transaction

1. An invalid transaction shall not entail legal consequences, except for those which are connected with its invalidity, and it shall be invalid from the moment of its conclusion.

2. In the event a transaction is invalid, each of the parties shall be obliged to return to the other everything received under the transaction, and if it is impossible to return that received in kind (including when the received is expressed in the use of property, a job performed, or a service provided), to compensate its value in money, unless other consequences of the invalidity of the transaction have been provided for by a law.

3. If it follows from the content of a contested transaction that it may be only terminated for the future time, the court when deeming the transaction to be invalid shall terminate its validity for the future.

Article 171. Invalidity of Transaction Concluded by Citizen Deemed to Lack Active Capacity

1. A transaction concluded by a citizen deemed to lack active capacity as a consequence of mental disorder shall be null.

Each of the parties to such a transaction shall be obliged to return to the other everything received in kind, and if it is impossible to return that received in kind, to compensate its value in money.

The party having active capacity shall be obliged, in addition, to compensate the other party for the real damage incurred by it, if the actively capable party knew or should have known about the incapacity of the other party.

2. In the interests of a citizen deemed to lack active capacity as a consequence of mental disorder, the transaction concluded by him may, at the demand of his trustee, be deemed by a court to be valid if it was concluded to the advantage of this citizen.

Article 172. Invalidity of Transaction Concluded by Minor Under Fourteen Years of Age

1. A transaction concluded by a minor who has not reached fourteen years of age (youth) shall be null. To such transaction shall apply the rules provided for by Article 171(1), paragraphs two and three, of this Code.

2. In the interests of the youth, a transaction concluded by him may at the demand of his parents, adoptive parents, or trustee be deemed by a court to be valid if it was concluded to the advantage of the youth.

3. The rules of this Article shall not extend to petty domestic and other transactions of youth which they have the right to conclude on their own in accordance with Article 28 of this Code.

Article 175. Invalidity of Transaction Concluded by Minor from Fourteen to Eighteen Years of Age

1. A transaction concluded by a minor from fourteen to eighteen years of age without the consent of his parents, adoptive parents, or guardian in the instances when such consent is required in accordance with Article 26 of this Code may be deemed by a court to be invalid upon the suit of the parents, adoptive parents, or guardian.

If such transaction has been deemed to be invalid, the rules provided for by Article 171(1), paragraphs two and three, of this Code shall apply respectively.

2. The rules of this Article shall not extend to transactions of minors who have come to have full active capacity.

Article 176. Invalidity of Transaction Concluded by Citizen Limited by Court in Active Capacity

1. A transaction relating to the disposition of property concluded without the consent of the guardian by a citizen limited by a court in active capacity as a consequence of alcohol or drug abuse may be deemed by a court to be invalid upon the suit of the guardian.

If such transaction has been deemed to be invalid, the rules provided for by Article 171(1), paragraphs two and three, of this Code shall apply respectively.

2. The rules of this Article shall not extend to petty domestic transactions which a citizen limited in active capacity has the right to conclude on his own in accordance with Article 30 of this Code.

Article 177. Invalidity of Transaction Concluded by Citizen Not Capable to Understand the Purport of His Actions and Directing Them

1. A transaction concluded by a citizen, although having active capacity but at the moment of concluding it being in a state when he was not capable to understand the purport of his actions or to direct them, may be deemed by a court to be invalid upon the suit of this citizen or other persons whose rights or interests protected by law have been violated as a result of the conclusion thereof.

2. A transaction concluded by a citizen who is subsequently deemed to lack active capacity may be deemed by a court to be invalid upon the suit of the trustee if it can be proved that at the moment of concluding the transaction the citizen was not capable of understanding the import of his actions or directing them.

3. If a transaction is deemed to be invalid on the grounds of this Code, the rules provided for by Article 171(1), paragraphs two and three, of this Code shall apply respectively.

Article 178. Invalidity of Transaction Concluded under Influence of Delusion

1. A transaction concluded under the influence of delusion having material significance may be deemed by a court to be invalid upon the suit of the party which acted under the influence of delusion.

Delusion as to the nature of a transaction, the identity, or such qualities of its subject which considerably reduce the possibility of using it for its purpose shall have material significance. Delusion as to the motives of a transaction shall not have material significance.

2. If a transaction is deemed to be invalid as concluded under the influence of delusion, the rules provided for by Article 167(2) of this Code shall apply respectively.

In addition, the party upon whose suit the transaction was deemed to be invalid shall have the right to demand from the other party compensation for real damage caused to it if it is proved that the delusion arose through the fault of the other party. If it not proved, the party at whose suit the transaction was deemed to be invalid shall be obliged to compensate the other party at its demand for real damage caused to it even if the delusion arose through circumstances beyond the control of the deluded party.

Article 179. Invalidity of Transaction Concluded Under Influence of Fraud, Coercion, Threat, or Ill- Intentioned Agreement of Representative of One Party with Other Party or Coincidence of Grave Circumstances

1. A transaction concluded under the influence of fraud, coercion, threat, or ill-intentioned agreement between a representative of one party with the other party, as well as a transaction which a person was forced to conclude as a consequence of the coincidence of grave circumstances on conditions extremely disadvantageous for himself which the other party took advantage of (transaction on crushing terms) may be deemed by a court to be invalid upon the suit of the victim.

2. If the transaction was deemed invalid on one of the grounds specified in point 1 of this Article, then the other party shall return to the victim everything received by it under the transaction, and if it is impossible to return that received in kind, the value thereof shall be compensated in money. Property received under a transaction by the victim from the other party, as well as that due to it in compensation for what was transferred to the other party, shall go to the revenue of the Russian Federation. If it is impossible to transfer the property to the revenue of the Russian Federation in kind, the value thereof in money shall be recovered. In addition, the other party shall compensate the victim for real damage caused to it.

Article 180. Consequences of Invalidity of Part of Transaction

The invalidity of part of a transaction shall not entail the invalidity of its other parts if it is possible to suppose that the transaction would have been well concluded without including the invalid part thereof.

Article 181. Periods of Limitation for Invalid Transactions

1. A suit concerning the application of consequences of the invalidity of a null transaction may be filed within ten years from the date when the fulfillment thereof commenced.

2. A suit to deem a contested transaction to be invalid and concerning the application of the consequences of its invalidity may be filed within a year from the date of the termination of the coercion or threat under whose influence the transaction was concluded (Article 179[1]), or from the date when the plaintiff learnt or should have learnt about other circumstances which are the grounds for deeming the transaction to be invalid.